PEER COMPANIES

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PEER COMPANIES

Since last few years, we have been seeing the board room activities of many companies in full swing, and these board room activities have become an integral feature of today’s capital markets.

There are lots of things a company can do in the marketplace, which can affect its share price. From mergers and acquisitions to share buybacks, corporate actions have a direct impact on stocks. So, it is very important to have an understanding on different types of corporate actions to get an idea as to how corporate actions affect stock prices.

Companies undertake corporate actions with the primary intention of rewarding shareholders through influencing share prices and corporate restructuring. Undoubtedly, through corporate actions, shareholders are given an opportunity to receive a benefit or participate in a re-organisation process.

A good understanding of corporate actions can give a clear picture of a company’s financial health, and can help investors get their investment strategies right. Since corporate actions often carry information about current and future profitability of a company, their impact may go beyond the capital market.

Prospects of these companies look good, because of which their share price movements are less affected by the market forces. Though corporate activities undertaken by these companies are different from each other, but the objective is to consolidate their positions and get maximum benefits from future growth potential.

It is expected that these kinds of corporate actions will boost investor confidence. Investors can earn good returns if they know how to read into such corporate actions.